Bitcoin has made a strong start to the week, with three consecutive green candles on the weekly chart. However, the recent price surge has pushed Bitcoin to the brink of the psychological $100,000 resistance level, raising concerns about a potential correction.
Why a Correction Might Be Imminent
While the current bullish trend is strong, it's important to remember that corrections are a normal part of any bull market. In this case, a correction could be triggered by a few factors:
* Overbought Conditions: The rapid price increase has led to overbought conditions in the market. This means that the price may be overvalued, and a pullback could be necessary to rebalance the market.
* Psychological Resistance: The $100,000 level is a significant psychological resistance level. If buyers fail to break through this level, it could lead to a sell-off.
* Unfilled CME Gap: There is an unfilled CME gap around the $76,000 level. This gap could act as a strong support level, but it's also possible that Bitcoin could fill this gap during a correction.
What to Expect Next
If a correction occurs, it could provide a buying opportunity for investors who missed the recent rally. However, it's important to monitor the market closely and be prepared for any sudden price movements.
Here are some key levels to watch:
* $100,000: This is the key resistance level. A break above this level could lead to further upside.
* $76,000: This is the unfilled CME gap. A break below this level could signal a more significant correction.
It's important to remember that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Therefore, it's crucial to manage your risk and invest only what you can afford to lose.
Disclaimer: This is not financial advice. Please do your own research before making any investment decisions.